- Summary:
- USD/INR rebounds above ₹85.50 on softer tariff hopes, with eyes on ₹86.13–₹86.88 for a potential breakout.
Table of Contents
After a prolonged bearish streak, the USD/INR currency pair finally turned green, sparking hopes of a technical rebound. With the pair bouncing off critical support near ₹85.50, traders are watching closely for signs of sustained recovery.
Fundamental Overview: What’s Driving the USD/INR Recovery?
The Indian rupee had strengthened aggressively recently, pushing USD/INR to multi-week lows. However, Monday’s price action suggests the selling may be overdone. The trigger? Market speculation that a potential Trump administration may moderate its previous tariff threats, especially toward key partners like India.
USD/INR Technical Analysis: Bulls Defend ₹85.50 Zone
The daily chart shows clear signs of support-based buying interest. After a sharp fall from ₹87.98 highs in late February, USD/INR is stabilizing.
Support Levels:
- ₹85.50 – Immediate support; held firm during recent selling
- ₹85.37 – Minor swing low support from mid-January
- ₹84.88 – November’s breakout retest zone
- ₹84.21 – Key floor if downside resumes
Resistance Levels:
- ₹86.13 – First obstacle for bulls; needs to be cleared for trend reversal
- ₹86.50 – Previous breakdown zone and 20-day EMA cluster
- ₹86.88 / ₹87.44 – Major resistances from recent swing highs
- ₹87.98 – Year-to-date high and ceiling for the broader bearish trend
Outlook: Cautiously Bullish — Bounce in Play but Needs Follow-Through
While the broader trend remains downward since peaking near ₹87.98, the price action near ₹85.50 marks an important inflection point. A daily close above ₹86.13 would increase the likelihood of a bullish retracement toward ₹86.88. However, failure to hold above ₹85.37 may trigger fresh downside toward ₹84.88 and below.
Conclusion: Watch 85.50-86.13 Closely This Week
The USD/INR rebound is technically supported and fundamentally driven by softening global trade rhetoric. As the dollar regains some strength and the rupee faces pressure from falling export momentum, the pair could witness further recovery—if bulls defend support zones with volume confirmation.
